Green digital transformation and clean energy management in fashion companies: Circular economy and green innovation as pathways to sustainable performance

The purpose of the present study is to analyze the capacity of green digital transformation and clean energy management to achieve sustainable performance in textile and fashion firms, considering circular economy and green innovation. Drawing on dynamic capabilities theory and the resource-based view, the study argues that green capabilities do not automatically improve sustainable performance; rather, they require internal organizational mechanisms that make them tangible. Based on a survey administered to 283 business managers in Colombia, the proposed theoretical relationships were analyzed using partial least squares structural equation modeling. The results showed that green digital transformation capability and clean energy readiness were positively associated with circular economy practices and green innovation capability, which were, in turn, positively associated with sustainable performance. The study identifies two internal organizational pathways consistent with corporate sustainability in a resource-intensive industry.